Annihilation continues where the first movie ended, but Sonya, Liu Kang, and Rayden are wearing completely different clothes.
(at around 1 min) In an opening shot taken from the prequel film, Liu Kang is wearing a dirty tank top; presumably only seconds later in the first shot of "Annihilation", he's wearing a clean sleeveless shirt.
(at around 1h 13 mins) Shao Kahn removes his cape before the final battle, but it reappears briefly during the fight before disappearing again.
(at around 17 mins) When Scorpion and Sub-Zero are about to fight we clearly see Scorpion with white contacts over his eyes, but during the fighting you can see the actor/stuntman playing Scorpion does not have any white contacts in.
(at around 32 mins) Nightwolf says Liu Kang will have to face three tests. The first is "courage"; but after he tomahawks Kang to put him in the dream state, he disappears never to be seen again, and the tests are never even mentioned again.
(at around 17 mins) The ice bridge Sub-Zero makes is very obvious that it's not made of anything close to resembling ice. Being that, ice is much heavier than the "ice" bridge that broke into 2 pieces that fell into a pit.
With seemingly no explanation at all and despite the fact that Johnny Cage kills Scorpion in Mortal Kombat (1995) and Liu Kang kills Sub-Zero in Mortal Kombat (1995), both Sub-Zero and Scorpion appear to have come back from the dead to fight again in Mortal Kombat: Annihilation (1997). Sub-Zero did not come back from the dead; the character in this film is the brother of the Sub-Zero from the first film. Additionally, Scorpion was ALREADY dead in the first film even before being defeated by Johnny Cage. As an "undead" character he can basically "come back" all he needs to.
(at around 2 mins) Upon arriving on Earth, Shao Khan bellows that "the Earth was created in six days." How do intergalactic alien warlords know about Earth religions? Even sillier, he says this while in Chinese monastery. Outworld and Earth have been competing against one another in Mortal Kombat for generations; it's not unthinkable the residents out Outworld would learn a few things about Earth over time.
(at around 59 mins) When Lui Kang hits Baraka into the fire pit, not only is it the footage of Rain (who was knocked in there by Shao Kahn earlier in the movie) but you can also see a hand reach up and grab him.
After Rayden has his new identity, he is attacked by the ninjas. During this fight scene you can clearly see Rayden's stunt double instead of the main actor fighting.
(at around 42 mins) In the mud pit, Jax beats up the demon that comes out of the ground. As said demon retreats into the earth, watch as its right horn simply disappears from the shot halfway down into the ground.
(at around 1h 15 mins) During the fight scene between Sonya and Ermac, when Sonya grabs Ermac's head with her legs, his mask falls off and you can see the actor's face.
The skeletons on the Golden Gate bridge are obviously made of clay.
(at around 16 mins) Liu Kang kicks Smoke down the ravine because the missile is about to explode. When the missile explode and they switch the scene, Liu Kang is at least 10 meters from the ravine's edge.
27:55 and 28:20, the third and fourth hands of Sheeva are missing.
(at around 1h 4 mins) When Jade says "We could never have stopped them alone" to Shao Kahn, her lips do not match the words she speaks.
(at around 28 mins) When the purple ninja Rain is smacked into the fire pit by Shao Khan, look closely as the body falls into the pit. A stage helper's hand comes up to catch the falling "body".
(at around 51 mins) Shinnok berates Shao Kahn late in the film. Khan replies that it was the only way to get the heroes to Outworld. The heroes were very clearly already headed to Outworld in order to fight him and to rescue Kitana before any of the previous scene happened.
(at around 19 mins) After Scorpion kidnaps Kitana, Sub-Zero walks up to Liu Kang and says that "what happened here is proof that [he] isn't ready." Liu Kang didn't even take part in the preceding fight, so how would any of the Sub-Zero/Scorpion battle prove anything about Kang's readiness one way or the other? Further, even if it did, the only reason Scorpion was able to kidnap Kitana in the first place was because Kang was busy saving Sub-Zero's life.